Bitcoin Sees Bullish Signs, Says Scott Melker
Bitcoin broke above a crucial technical level on April 18, closing above the 50-day simple moving average (SMA) for the first time since early February. It’s a bullish sign, according to analyst Scott Melker, also known as The Wolf Of All Streets. It is the robust daily candle. BTC had corrected slightly to $84,349—above the 50-day SMA level of $84,202—at the time of writing.
Melker emphasized the significance of such a move, suggesting it could be a shift of momentum. That being said, he cautioned that enthusiasm needs to be tempered due to contradictory signals and light volume.
BTC Battles with EMA and Light Volume
Even as it reclaimed the 50-day SMA, Bitcoin is still below the 50-day exponential moving average (EMA) of $85,328. This indicates that the uptrend is not yet solidified. Moreover, the rally is not backed by robust trading volume—typically a sign that institutional and large players are waiting in the wings.
On April 17, large exchanges traded only 8,000 BTC in volume, a drastic decline from April 9, when volume was 26,000 BTC. Such weak activity suggests that market participants are holding out for favorable macroeconomic news before going in force.
Macro Headwinds Weigh on Market Sentiment
Broader market nerves also explain the uncertain future of Bitcoin. The U.S.-China trade war has been driving concerns about a recession. Conversely, the Federal Reserve’s reluctance to ease policy is due to inflation threats posed by the U.S. tariffs on Chinese imports.
Without positive macro cues, traders are reluctant to drive a breakout.
Key Resistance and Downside Threat
Bitcoin enjoys immediate resistance at the $85,000 level, also the peak of a bear channel from its January highs. If BTC fails to get volume backing, warnings are that it could fall back to the midline of the channel at $75,000.
Even Melker’s bearish prediction holds out some hope, though, because the low-volume rally reminds us that the crypto markets remain short of conviction.
